NYC Real Estate - Q1 2023
Nishant Sondhi
Real Estate Investment Fund Manager | Specialized in Passive Investing for Multifamily & New Developments | Data-Savvy, Transparent, Committed
Greetings, and I hope you are well.
Manhattan Overview:?In Q1, New York City is experiencing a spring awakening as the contract activity surged by 14.5 percent compared to the previous quarter.?
Both buyers and sellers are now more willing to proceed with their transactions after mostly being passive during the latter half of 2022.?They have acknowledged the presence of higher interest rates, continuous economic uncertainty, and persistent geopolitical challenges.
Recorded Sales
-?In Q1 2023, there was a significant decrease of 35.0% in the number of properties sold compared to the previous year,?especially following a slow fourth quarter of 2022.?
- Among all the property types, condos had the most significant decline of 39.6%, despite their average prices rising by 10.9% year-over-year to nearly $3M.?
- In the ultra-luxury sector, which involves properties priced at $20M and above, there was a sharp increase of 200% in sales year-over-year and a 36.4% increase quarter-over-quarter.
Contracts Signed
-?In Q1 2023, the number of contracts signed decreased by 32.1% compared to the same period in the previous year,?but there was a 14.5% increase compared to the previous quarter.?
- The average co-op prices increased by 9.1% quarter-over-quarter, and the median co-op prices increased by 4.3%.?
- However, the median price of a condo decreased by 9.6% year-over-year and decreased compared to the previous quarter.
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Inventory
-?The inventory of active properties remained steady at around 6,000, with a slight increase of 1.4% year-over-year and 4.9% quarter-over-quarter.?
- However, there was a significant decrease of 25.2% in new listings compared to the previous year.?
- The price range of $1M-3M made up 37.1% of active listings, showing a 6.7% increase from the previous year.
Conclusion
Like the rest of the country, New York City is facing an ongoing challenge of a shortage in inventory. However, homes that are priced accurately and in good condition are still being bought and sold, as people's life circumstances cannot wait for better market conditions.?
Despite external uncertainties, the Manhattan real estate market is still a valuable asset class, and there are indications of continued market growth, with consumers becoming more willing to engage in transactions.?
If you would be?interested in investing in Multifamily properties?across emerging markets in the U.S. that generate cash flow and have value add opportunities - please DM me.
Data Source: Compass
The Sondhi Team:?Nishant is a Real Estate salesperson in Manhattan and Brooklyn and the Founder of the Sondhi Team, and his team specializes in Residential Real Estate. He is passionate about helping buyers and sellers navigate the New York market, save them thousands of dollars, time and make the process enjoyable. His strong analytical, marketing, and negotiation skills developed during his MBA and over 10 years of sales experience give him a unique edge to serve his clients best.